Bank African Development (AfDB) has recently approved a USD 16.5 million loan to finance the third phase of the Tanzania Institute Support Project for Good Governance (ISPGG III), which seeks to help the government achieve growth inclusive and macroeconomic stability through more effective management of public funds (PFM) and conductive business environment.
loan, with an interest rate of 0.00%, a maturity period of 50 years and a grace period of 10 years, is part of a $ 140 million loan that is to be disbursed in equal installments of $ 35 million per year, which began in the 2014/2015 period and finishes in 2016/2017.
As it happened for the second phase of development in the period 2015/2016, which was focused on the need to consolidate the goals achieved in the first phase in terms of public procurement, the third phase will focus on capacity building, improve accountability, transparency and integrity in PFM.
ISPGG III also support capacity building for the development and reform PFM in Tanzania, when it will complement other industry reform programs under the supervision of other development partners that are being currently conducted in the power and industry PFM, explained AfDB Director of Governance, Economy Department of Management and Finance, Mr. Jacob Mukete.
According to the AfDB, ISPGG III as phase I and II did not, contribute to significant improvements in PFM and emphasize procurement, anti-corruption and external review that will be compatible with new global challenges lay in the management of the public sector.
Results of the first two phases can be seen in Dar es Salaam port management which recorded a significant improvement in governance since its punctuation incidence of corruption and rent seeking activities improved to 62.05% from 2.53 in 2014 to 4.10 in 2015 against deterioration by 12.33% 2.92 to 2.56 in the same period in the port of Mombasa, according to the Shippers Council of East Africa (SCEA).
European Union (EU) mission to Tanzania, through the European External Action Service (EEAS), also recently set aside EUR 626 million fund for the development of projects in governance and development in the country towards 2020.
German Embassy in Dar es Salaam also now collaborating with the fight against corruption awarding Tanzania and USD 175 million fund that will partially awarded cash and labor to increase good governance and other sectors such as water, health and renewable energy in the next three years.